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good morning. debt deadlock, after a rare good morning. debt deadlock. president obama and leaders from both parties fail to make an agreement. they're back at it today as the clock keeps ticking. we'll talk to one of the negotiators in the high stakes discussions. close to 100 people went overboard and are feared dead, including children. we'll bring you the very latest on the desperate search for survivors. summer swelter, a dangerous heat wave leads to warnings across 15 states from the southern plains to the northeast, as temperatures reach triple digits. we'll tell you just how long it's all expected to last. and end of "the world." massive phone hacking scandal
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shuts down one of britain's tabloids. and now allegations that the victims of 9/11 were targeted. we'll get more on the controversy on this early monday we'll get more on the controversy on this early monday morning, july 11, 2011. captioning funded by cbs >>d mo good morning. welcome to the "early show" here on a monday morning. i'm chris wragge. >> and i'm erica hill. >> big sports news this morning. >> huge. >> you had to see it. everybody is talking about it. women's world cup soccer, after one of the most thrilling goals in the history of soccer, male or female. ali creager here. >> they tie it up. >> at that point, everyone is saying to themselves, lights out. it's over. then it comes to the shootout. they take it 5-3 over brazil. now they're in the semi finals. >> they'll meet france on
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wednesday. just fantastic to watch. i love watching the players, how excited they are. no joke, of course, when it comes to soccer. >> this came 12 years to the day after they won the world cup. >> is that when that happened? >> when the whole shirt came off. do you remember that? >> i do. first we're going to touch on, yes, the debt ceiling. the deadline is looming for raising the federal debt ceiling. there were more talks at the white house sunday. still no resolution. president obama has told lawmakers, be prepared to meet again today and every day until a deal is reached. cbs news senior white house correspondent bill plante has the latest for us this morning. bill, good morning. >> reporter: good morning, erica. there is another meeting here today. before that, the president is having a news conference. his staff says he will, again, make the case in public about doing something big, cutting $4 trillion, restructuring the tax system. even though that's what derailed the talks over the weekend.
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halfway into the weekend negotiations, house speaker boehner pulled the plug on the so-called grand bargain. a $4 trillion deficit reduction deal he had been discussing with the president, saying he just didn't have the vote. >> big tax increases in the middle of the economic situation that's extraordinarily difficult with 9.2% unemployment. >> on cbs' face the nation, tim geithner said the president is not giving up. >> he wants to do the best deal. >> what happened over the weekend to sour the gop on president obama's grand plan? in a word? taxes. speaker boehner encountered staunch opposition from fellow republicans to refused to sign off on any deal that could be construed as raise iing taxes. >> the main problem here, the thing that's affecting our economy, our jobs is an overbearing government that's
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spending too much, borrowing too much, is creating too much debt. >> with the august 2nd debt limit progressing, the claim is that he is engaged in scare tactics. >> no responsible leader would say the united states of america for the first time in history, should not pay its bills. that would be catastrophic. >> reporter: people in the room yesterday during those talks say their members realize a big deal would be easy to pass. republicans, of course, don't agree. they also say everyone in the room, republican and democrat did agree that something has to be done and soon. erica? >> funny, bill, the american people seem to have agreed on that for a long time, too. bill plante, thanks. chris van hollings, ranking member of the budget house committee, representing house democrats. good to have you with us this morning. >> good to be with you. >> thanks.
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give us an idea, where do we stand now at five minutes after 7:00 on monday morning? >> erica, the united states congress needs to do what the women's soccer team just did, which is seal the deal in the final minutes here. unfortunately, the sides are at lagerheads. the president has said, rightfully so, it's important to do something that meet twos objectives. one, helps get the sluggish economy going and, number two, does something big about deficit reduction over the next ten years in the range of $4 trillion. unfortunately, as you heard, republicans have balked because while they'll accept the cuts, and we will, too, they refuse to eliminate many of these tax breaks for corporate special interests, corporate jets, oil and gas companies and folks at the very high end of the income scale. and that, apparently -- protecting those things is more of interest and concern to them than getting this deficit deal. >> the president has said -- the president is coming out, essentially saying, look, go big or go home.
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that's not sit well with most folks. now there's this talk of the president is going to say today, look, bring something that will pass in both houses. is there something that you know of in these talks that would, in fact, pass in both houses? >> that's the trouble, erica. i was part of the biden discussions. we did make some progress. at the end of the day, as you know, republicans walked out of the talks. why did they walk out of the talks? same issue as you've seen with the bigger deal. democrats degree with some cuts. you need to have balance here. can you not be whacking all these programs. they call for deep cuts in medicaid and education. we've said we're not going to be doing those things when you've got people with these big tax loop holes, oil and gas companies. and so that's why the president is saying, in some ways, doing the medium sized deal is just as hard as doing the big deal.
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why don't we just do a big deal and get something done for the country? >> although, we should point out, though, leader pelosi, democrats in the house have also drawn a line in the sand when it comes to any changes in social security and entitlement programs. there has to be give and take on both sides. you mentioned the two-tier agreement. is that still there, at this point, do you think? >> it was never there. that's the problem. what we talked about was about $1.1 trillion in cuts and savings. you're hearing grossly inflated numbers coming up from the republican side. in the biden group, we did not get close to $2 trillion in cuts. again, the gap there was closing these corporate tax loop holes. now, democrats have said, yes, you're right. there will be tough decisions that have to be made. democrats said we're willing to do it. the president is continuing to press for that. >> we'll look at what happens. little politicking on both
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sides. hopefully, we'll see some resolution. congressman chris van hollen, thank you very much. >> thank you. rebecca jarvis joins us to explain the impact this is having on the american economy and what might happen if a deal is not reached. >> good morning, rebecca. >> good morning, chris. >> no one wants to hear not reache reached. >> first thing is our credit gets cut. that would get cut. that would send stock market shock waves through the entire system, not only here in the united states but around the globe. of course, that's an impact on anyone's pension fund, 401(k). for an average individual all of a sudden, access to loans get harder. the actual cost of loans is going to go up in addition to
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that, for anyone who wants to, for example, get a mortgage, buy a car, expand their business. >> just what people want to hear, interest rates going up as a residual effect. >> they may come to some type of agreement on a short-term deal. does a short-term deal help us in the long run? >> not exactly. it sort of kicks the can down the road. the big complaint in corporate america right now is that there's so much uncertainty. they don't know the direction of our economy. they can't sense what the future will be, because there's all these new regulations likely coming down the pike. and they can't plan their business based off of that uncertainty. that essentially creates more uncertainty. and it says we're going to deal with this problem again down the road. and it just means business that is might think about hiring are still say, i don't know what the future holds. >> rebecca jarvis, thanks so much. good to talk with you this morning. cbs news will carry president obama's news conference live, starting this morning at 11:00 eastern time right here on cbs.
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new fallout this morning over that phone hacking scandal in britain, already taking down one of the most popular tabloid newspapers in the world. it is now threatening to do the same to some of rupert murdoch's top deputies. in left knee done this morning with more is elizabeth palmer. good morning. >> reporter: good morning. one of the main lines of inquiry is going to try to determine whether senior officers of murd murdoch's company knew of or were involved in unethical or especially illegal activity. mobbed by reporters in london, rupert murdoch battled through reporters to have lunch with rebecca brooks. there is a scramble inside the media empire to control toxic fallout from "the news of the world" hacking scandal, which could start making waves in the u.s. >> there's also the issue of did
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it happen here? "the news of the world" has lots and lots of reporters at any given time on the ground in the u.s. many of its stories, particularly many of its celebrity stories are datelined here. >> reporter: the scandal broke last week with the case of millie dauer. her parents and others discovered that personal voice messages had been hack ed by nes of the journalists hunting for stories. in 2007, a secret internal investigation at murdoch's uk company -- the question now is who knew what when? the ceo of dow jones and publisher of the wall street journal, both owned by murdoch. he may have seen that report. and rupert murdoch's son, james,
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authorized a reported $1 million payment to one of the hacking victim. >> i acted on the advice of executives and lawyers within complete investigation. and that's a matter of real regret for me, personally. >> reporter: shareholders ain te murdoch family are watching closely. in "the daily mirror," another british tabloid, you can see rupert murdoch is on the cover. a policeman, turned private investigator, was asked by "news of the world" for 9/11 victims phone numbers. they are the only ones reporting it so far and the source is anonymo anonymous. >> liz palmer, we have copies, we should point out here, of the final edition of "news of the world." it's interesting. they sort of go through a number of stories they covered on the inside. also a little cheeky.
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>> yes. we always comment on what the tabloids are like in the states and we have nothing on britain. i'm sure it will come back in some other format some point. >> sadly. >> don't totally say good-bye to this type of news. a check of the day's other headlines. don't have to worry about you, my friend. >> jeff, you look great. >> on page three? thank you very much. >> sorry. >> why don't you frame that one? good morning to everyone at home. we begin here with an attack in baghdad this morning as new secretary of defense leon panetta makes his first visit to iraq. there were no injuries reported. panetta was not there. he was at u.s.'s camp victory at the time. after talks with u.s. commanders, panetta and iraqi leaders will discuss keeping a military force possibly there past the end of this year.
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there is little hope of finding any survivors from a river cruise boat that sank yesterday. 41 are confirmed dead. 80 were rescued from that overloaded boat that went down with nearly 200 on board. here in this country, federal authorities are investigating a plane crash that killed seven members of one family. twin engine cessna in western alabama saturday night after engine failure. all those on board, the pilot, his wife and five of their six children, all from florida, died. nasa
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>> thanks so much. that's your latest weather. over to chris and erica. good morning. >> marysol, good morning. >> good morning. strange good morning, wasn't it? sorry. just ahead women's world cup thriller. the u.s. advances now to the finals. >> a look at the dramatic climax when we return. this is "the early show" on cbs. of moderate to severe rheumatoid arthritis could be another day you're living with joint damage. help stop the damage before it stops you by asking your rheumatologist about humira. for many adult patients with moderate to severe rheumatoid arthritis humira has been proven to help relieve pain and stop joint damage.
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the united states faced brazil in the quarterfinals of the 2011 women's cup on sunday, a wild nail biter adding another chapter to the championship rivalry dating back to the 2004 olympic final in athens. terrell brown has this report.
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>> reporter: clinging to a 1-0 lead in the second half the u.s. was forced to play the last 25 minutes of regulation plus overtime a player down after defender rachel buehler was ejected for an illegal takedown of brazilian forward marta. the subsequent penalty kick. marat that made a spectacular kick over hope solo gave brazil a 2-1 advantage. the struggling americans caught a break late in the game as the stalling tactics of a brazilian player added needed minutes to overtime. the extra time set up a dramatic leg cross to abby wambach who added the u.s. into a shoot-out. the goal came into the 121st
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minute of play making it the latest goal in world cup history. solo denied two brazilian penalty kicks as the u.s. went a perfect 5 for 5, earning a trip to the semifinals versus france. >> she does it, the usa are into the last four! it's been a year of miracles in dresden. >> since 2004 the u.s. is 3-1 versus brazil in elimination matches in the world cup. the next go, against france on wednesday in the semifinals. incredible win, huh? >> it's so much fun to watch, every time you watch it. >> all the favorites are out so the u.s. has a real good win. >> i know who i'm rooting for. after a wildly successful visit to canada, the duke and dutch us charm the people of los angeles, beverly hills and skid row. this portion of "the early show" sponsored by discover. it pays to discover.
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there's been another shooting on a popular trail in the east bay. a man was shot around midnight on the "delta - de anza trail" in pittsburg. there's no word on his condition. the shooting happened not far from where a man was fatally shot on the trail last week. no injuries in an overnight fire at a school in daly city. the fire began about 10:30 last night in a portable classroom at skyline elementary school. the cause is under investigation this morning. the california highway patrol is increasing enforcment of the state's new "move over" law today. the law says drivers have to slow down when they approach caltrans or emergency workers... and move away from the lane closest to the workers. traffic and weather... in just a moment. the early show continues in jus,
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half past the hour as we welcome you back to "the early show." just ahead, they came, they saw, boy did they charm. prince william and catherine had a short visit in california over the weekend. here you see them meeting with kids at inner city arts, an art program. we'll have a full wrap of their weekend trip as a married couple. pretty tough to stun people in hollywood and i think they may have done that. >> they were impressed and reviews of good so far. jeff glor is at the news desk. how are you? >> we have to say catherine, not kate. >> i think we can say that. >> i think we're close enough we can still say kate. >> good morning everyone. president and congressional
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leaders more budget talks. the two sides seem to be far apart after a rare sunday evening session. the president still pushing for a larger $4 trillion deal to cut the deficit and mr. obama will discuss this at a news conference this morning, see that here on cbs at 11:00 a.m. eastern. in iraq three rockets hit baghdad's green zone this
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from the red kampt carpet t polo field to skid row, the duke and duchess visited the full spectrum of california. ben tracy talks about how the royal couple visited california and then returned home. >> reporter: l.a.'s skid row is not where you to expect to find a future king and queen but these two are not common royalty. on sunday prince william and
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catherine visited poor arts. back in england he's an advocate for the arts and kids who are disadvantaged. he even gets his hands dirty. it was a change from the night before when the prips and his princess managed to outshine some of hollywood's brightest stars. >> the biggest stars in the world. >> reporter: these were fund-raisers for the british tv academy. >> when america and british talent gets together, magic happens. let's continue the winning formula. >> reporter: this prince knows something about winning. in santa barbara saturday he led his polo team to victory scoring four points. he told the crowd about his mood before the match. >> completely depends on the result today. i'm not a good loser. >> reporter: his humor catherine's style and ease with the spotlight has helped the pair rebrand the royal family. >> fantastic. >> this visit was will
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reinvigorating the royal family, new era of the monarchy, before now seen as quite stuffy and old-fashioned. >> we like royalty and there's something about it we still like but we want humble royalty. somehow this couple has managed to pull that off. >> if you met them as a couple and they didn't have all of that you'd really like them as people. >> this is the last event on our tour of north america but to my mind one of the seriously most important. >> reporter: before leaving the u.s. the royal couple stopped at a job fair for u.s. soldiers. >> catherine and i both have friends back in britain who could benefit from a brilliant initiative like this. >> reporter: time to leave the states behind heading back to their future kingdom. ben tracy, cbs news, los angeles. >> the royal visit will have long-term benefits for many. it's estimated the duke and duchess raised nearly $7 million for charity in this past weekend alone. just ahead, pro football players and nfl team own ares are still talking.
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the lockout is still on and we'll look the at the prospects for a deal when we come back. you're watching "the early show" on cbs. you go. it's a cloud of depression. and although you've been on an antidepressant for at least six weeks, you're frustrated that your depressive symptoms are still with you. seroquel xr, when added to an antidepressant, is approved for the treatment of major depressive disorder. for many, taking seroquel xr with an antidepressant was proven more effective than an antidepressant alone for treating unresolved symptoms of depression. talk to your doctor about seroquel xr. then visit for a free trial offer. call your doctor if you have unusual changes in mood, behavior, or thoughts of suicide. antidepressants can increase these in children,teens, and young adults. elderly dementia patients taking seroquel xr have an increased risk of death. call your doctor if you have fever, stiff muscles, and confusion, as these may be signs of a life-threatening reaction or if you have uncontrollable muscle movements,
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the nfl lockout drags on, almost four months after it began. with training camp to open in four days time is running out on reaching an agreement. nearly four months after nfl owners locked out players, contract negotiations are said to be close on some major issues including revenue sharing but now bogged down over wages for rookie players. >> the observers want to make sure the high draft picks get paid. the owners say give them the money but after they've earned it. >> the labor dispute began march 11th when the players dissolved the union and sued the league. the owners responded by imposing a lockout. without access to facilities, players conditioning is unstructured and unsupervised by team doctors and coaches. >> i have to be ready physically and mentally to get ready for the season, so for myself i keep training and you know acting accordingly as if we're going to have a season.
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>> later today lawyers for both sides will meet in new york to continue with negotiations with an expectation deals will be met july 18th. >> some estimate for every pre-season lost it's an estimated $200 million. it's not just the teams and owners. it's the communities, the stadiums and the jobs in those cities as well. >> but in a league where revenues are expected to top $15 billion in the next five years, players still feel they're being short changed by not being offered an equal share in team revenues. >> we still have work to do. we're going to continue to work hard to make sure that the deal is fair. >> i think being patient throughout this has been important. that's what i've tried to do. the lockout hasn't been good for anybody. >> joining us now from dallas is former dallas cowboy and nfl hall of fame wide receiver michael irvin. michael good morning. >> chris, good morning. >> you talk to players all the
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time. are we close to getting a deal done? >> well, it depends on who you're asking right now. a lot of the veterans that have been around a while and been around the owners and know how things are working, they're saying i'm anxious but let's wait and see. a lot of young guys who haven't made a whole lot of money right now, haven't had a chance to stack their stacks, they're anxiously waiting saying this is good news and looking forward to getting back because of the situation. >> it sounds more and more like they are close. at least the conversations are civil, where at the beginning they weren't. i think the average fan is probably sitting back saying we're talking about splitting up over $9 billion so this is not like the debt ceiling where there is debt. there's a lot of surplus here. why can't a deal get done. can people expect there to be a full nfl season? that's what the fans want to know the most. >> the nfl and the players both want that and working real well towards that. i love the other day after, the
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judge ruled the lockout stays intact, that everybody came together, put a joint statement out, the owners and players saying we will continue along this course because that is the best course to get things done. the judges and the courts pushed both sides to get that done. >> this deadline this week of july 15, it's kind of a soft deadline but teams need to get together, there need to be some training camp. the first preseason game is the first week of august. is this the drop dead date for the first nfl season, do they need to have it done this week? >> if you're dealing with the guys we have, the egos, i say that in great spirit, egos, some of the great egos, wealthiest in the world, absolutely, these guys have to work together and you better believe they understand, deadlines are very important when you're dealing with these types of men so i'm expecting yes, we're hoping to get something done hopefully
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pretty soon. >> quickly, what can fans expect as far as the brand of football, teams and players have not been together all offseason, no mini camps, coaches and players can't talk to etch auto other. it will be truncated, free agency take place in about a week, what kind of football can we expect? >> we won't have the brand of football, the caliber that we've had at the beginning of the season because the reality is as players prepare for a season, they go through knicks and bruises, and all of the things that go on preseason and before preseason starts will be happening during the season as you turn into football shape. we hear people all the time talk about teams getting together individually. there's no way you can bring on the kind of intensity that you get in a preseason game in a regular season game in practice without pads, so there will be some slow time early on in the season. >> michael irvin good to talk
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with you. thanks so much. we appreciate it. >> chris, thank you, buddy. appreciate it. >> i guess the big question is debt ceiling or nfl season, what happens first? >> it's true. london, rupert murdoch is doing damage control in the middle of a phone scandal that has taken down one of his newspapers. lots of sun, some rain and that's how they get this big and beautiful.
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as we've been reporting this morning, there is word that phone hacking scandal out of britain that caused the "news of the world's" demise in the wake of hacking allegations, simon hoggart joins us this morning from london, good to have you with us. this paper may be going away, but there is still a large tabloid culture there. the u.s. is not immune either i should say, to some of the tabloidesque stories. does anything really change after all of this? >> oh, yes, i think it will have to after the revelations.
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they get more and more disgusting and horrible and the latest on my way to do this interview we heard "news of the world" had been paying a royal protection officer to leak news about the royal family. you know, that's pretty bad and what with the anniversary of 9/11, tenth anniversary coming up in a couple months, the fact that if it's true that the murdoch press was paying a private investigator to hack into the victim's phones that's going to bring it over to the other side of the atlantic, too. it cannot go on like this. there will have to be some massive clearout of the stables really. it looks terrible. >> looks awful and we're hearing the reports about the coziness between "news of the world" and the police in the uk. how did it get this bad? does it come down to money? seems there's fear involved in some ways, too. >> money, power and fear certainly, yes. murdoch press is very, very powerful, tabloid newspapers always claimed they could affect the results of an election if they came out for one side or
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the other that side would win and of course that terrified the other side and of course quite a few politicians their private lives are not perhaps beyond reproach they were scared if the attack dogs from the murdoch press were set onto them they'd be in big trouble. when this came out last week going into parliament behind me, listening to them, they were like political prisoners who just heard the tyrants they've been terrified for so long had just been shot. they realized murdoch c rossed a line with the hacking of the phones belonging to the families of murder victims, of soldiers who had been killed in afghanistan, and somehow they were free, and you've got here a political and a press culture outside the murdoch press and inside the murdoch press as well which is really zeroing in on this guy saying this can't go on, we've got to clean it out as fast as we possibly can. >> he has a huge media empire both in the uk, here in the u.s. as well, fox news, the "wall
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street journal," he flew to london last night to clear up the scandal, some talks he'd been trying to get his remaining stake of bskyb there. is that under threat? could this limit his reach and the reach of his organization? >> very much i'm afraid. in fact the conservative government has been nagged in the press by almost everyone to postpone murdoch's takeover of the biggest satellite broadcasting network in the united kingdom, one of the biggest in the world. clearly buckling under the pressure even as i speak. you could almost hear them doing it and the latest word is it may be postponed for about three years, that's a $1.6 billion business, a lot more than one newspaper. >> it is a fallout we'll continue to watch including the political wallout. simon thanks for your input this morning. we all want a world with fewer chemicals. we all want the best of both worlds. introducing all free clear oxi-active.
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investigators are looking into a late night fire at a school in daly city. it began about 10:30 last night, in a portable classroom at skyline elementary school. no one was injured. another shooting on a popular bay area trail. a man was shot around midnight... on the "delta - de anza trail" in pittsburg. there's no word on the victim s condition. the shooting happened not far from where a man was fatally shot on the trail last week. transit passengers in san jose and silicon valley can expect some changes starting today. the quarterly service changes are part of v-t-a's plan to keep improving on-time performance... and to make connections more efficient. there are schedule adjustments on some light rail and bus lines. traffic and weather... in just a moment. ,,
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welcome back to "the early show" here on a monday morning, welcome back to the "early show." top of the hour. focus is on the white house today as congressional leaders and the white house work to hammer out an agreement on the raising the debt limit. seems like for months right now. what have we done? we've convened a panel of experts to talk about that to underscore the importance of a timely agreement. >> if they don't act, then we face catastrophic damage. and the leadership, to their credit, republicans and democrats, fully understand it.
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they've been very clear of that to the president and to me as of last thursday that they won't take that risk. it will be tough on all leaders up there but we have no choice but to come together. the question is will we have an agreement that's good for the economy. >> they won't take that risk but they'll draw it out to the last possible second, it seems. joining us the author of "eightine acres." also with us a former spokesman for the presidential campaign. cbs news political correspondent jan crawford. good to have you all with us this morning. we heard from tim geithner. just to pose a question to all three of you. >> i sure hope so. seems like a real possibility that something will get done.
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we had a setback over the weekend when the speaker said that he was going to pull out of the big picture negotiations and big picture deal. and i think that's mass take for him both in terms of the economy and politically, but it seems like there is an interest on both sides to get something done. let's hope they can. >> was that mass take on the part of john boehner? because it did seem that things were going in a positive route for negotiations on both sides. >> we all held out hope that our leaders are going to step into the arena and do these big dramatic things. but the policy reatty for republicans is it's always a loser to stand behind tax increases. >> you keep hearing the word hope, hope seems to be fading here. we hear him saying out that it will be catastrophic for this u.s. economy. last thing people want to hear is another double dip recession. seeing those 401(k)s drop. but the two have to combine,
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entitlements, we have to take a little tax cut, tax increases there may have to be another. time is running out. >> republicans say very clear, no, we're not going to have tax increases. there will be a deal. this is washington. they're going to push it to the very last minute, but there will be a deal. what that deal looks like, no one knows right now. too soon to say. really what we need to think about, a fundamental disagreement, republicans say no tax increases, let's cut spending, democrats saying, we have to raise taxes. at the end of the day we may not know who is the winner in this deal until next november. because it's the voters who will get to the side that comes out looking strongest. a ratification of what they want their government to look like. >> republicans are open to structural tax reform. tom coburn, one of the most conservative members of the u.s. senate, john mccain, they're all
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open to fundamental tax reform where we close those loopholes, which allow us to increase tax revenues, but then we have to lower the corporate individual tax rate. that's where things got lost in translation. when republicans heard closing loopholes, they believe that it must be accompanied by a lowering of the tax rates. democrats heard we'll close the loopholes, raise the revenues and we'll do some -- >> amazing how much of it is politicking and rhetoric, to be honest and how things are labeled by each party. you can be talking about the same thing. one says closing the loophole and the other says raising taxes. >> there were fundamental differences in that $4 trillion plan that republicans and john boehner had his pulse on the finger of not only the other republicans but the other candidates in the republican party, they will not have those tax increases. >> i'm not sure how much of that was john boehner having his finger on the pulse. he seemed to be ready to negotiate and get some of these
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loopholes closed but got pulled back by his own caucus. eric cantor said no way. >> but it was favorably with the biden plan. >> he got forced into that than really reflecting the voice of his caucus. >> we have to shift a little bit, too, because this is all obviously setting us up for 2012. i'll let you get on this one as we start, how much will this reflect on how this turns out for the president on where this goes for the democratic party in 2012? >> democrats want to see the president doing what he's doing. frankly, most americans do. that the president is actually working hard to bring both sides to the table to get a deal done that will spread the sacrifice and the responsibility across all parties. that's what people want right now. i don't think people agree with the republican caucus that says no revenue, that we're not going to deal with these loopholes. that's not what they want. so if the president keeps fighting for that, i think he
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ends up okay in 2012. the republicans are setting themselves up for a prty hard fall if they don't change their tone a little bit. >> as far as tone and now with job numbers and the mood again very dark in washington, two straight months of anemic job numbers and unemployment rate which is now at 9.2%. we know the history. at that rate it's tough to get re-elected. republicans say that's our chance to pounce. >> republicans won over the independents who delivered president obama his victory in 2008 was on the issue of the national debt, was on the issue of the size and the role of the federal government. so where republicans have an opportunity to stand for a smaller government, they also have an opportunity to hang on to the independent voters who, sure, they want to see their government work. everyone wants to see their government work, but republicans and increasingly independent voters are deeply skeptical of these demands from our leaders in washington that we must continue to grow the size of the federal government. >> is it one of the challenges that we should take to the
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republican party not just that the field is so large granted we're a ways out. but for the candidate who can do the best for the party in the primary if not when it comes to the general election. two very different candidates there. >> people say that about both sides. they said that about the democratic field. people thought that hillary clinton would have made a better general election candidate. and barack obama made a pretty good general election candidate. people say that every four years. usually works out for the side that wins. >> cover of "newsweek," sarah palin who again still has not put her foot in the ring just yet says, i can win. that's the take away from this "newsweek" article. are people sitting on the sidelines waiting for this woman? >> there's no question. i was in iowa when the movie about her life and leadership premiered. i had a chance to watch her interact with voters. i think she's going to run. people around her are supporting it. her family is behind her. she's been giving us these hints
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over and over again she's going in the race. it could be just a matter of time. the one thing i would look for is that she's said a couple different times on the trail that she's kind of waiting, weighing her options to see what someone else is going to do. texas governor rick perry. she's actually looking to see what rick perry's going to do, too. we'll have to wait and see. he's also possibly running. >> so much to talk about. we can keep going but sadly. >> we're getting the wrap. >> we have to go. >> jeff glor standing by at the newsdesk with a check of the other headlines. good morning. >> in russia this morning it's feared more than 100 people may have died in a cruise boat disaster. that vessel capsized on the vol ka river with over 200 people on board. that's nearly double its legal capacity. 80 passengers did survive. but 41 are now confirmed dead. the rest are missing, many are children, thought to be trapped nadz vessel. families aboard the doomed ship
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rushed aboard to see if their loved ones are missing. tomorrow is considered a national day of mourning in russia. a rocket attack on the green zone while leon panetta was visiting. his first visit there as defense secretary. three rockets were fired. there were no injuries reported. panetta was at a u.s. base near the airport at the time. he's concerned that iran is arming iraqi shiite militias. he vowed the u.s. will not walk away from the challenge. investigators at the scene of a plane crash in western alabama today. seven members of a family died when a cessna went down saturday night. it crashed in a wooded area. killed were the pilot, his wife and five of their children. gas prices are headed back up. aaa says the average nationwide is now $3.63 a gallon. a year ago at this time, it was $2.71 a gallon. this is a day of rest for cyclists in the tour de france.
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after yesterday, they need it. there were several crashes including two riders who were clipped by a news car, evil news car. one slammed to the pavement, the other flying into a
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>> this is a cbs news special report. i'm scott pelley. president obama is about to hold a news conference. it's his second in less than two weeks. that is very unusual. so is this. the country is facing the prospect of defaulting on its debts in the first time ever. in just 22 days unless congress votes to raise the government's borrowing limit. that is tangled up in a dispute
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between republicans and democrats over cutting spending and raising taxes. the president met at the white house last evening with congressional leaders in another attempt to break the deadlock, but that meeting was brief and apparently went nowhere. this is the president meeting with the leadership in the cabinet room in the west wing of the white house. the president is expected to tell us today where he hopes to go from here. chip reid is in the white house briefing room waiting for the president. >> reporter: we expect the president to continue to push for what they call the big deal, not the $2 trillion deal but the $4 trillion deal that he has been working on for weeks, but over the weekend, john boehner decided he couldn't get the votes and rejected that approach. the president is going to continue to insist on it. he is also going to say if you can't go to that deal, show me something to pass. what the president is frying to do is portray himself as the adult, the one willing to compromise while the republicans
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continue to be unagreeable. >> the president is going to talk about social security and medicare which is remarkable to say. the president was asked yesterday whether they thought he would make the deds line. he said "we need to." the president will be walking into the briefing room here in the next few seconds having made the short trip, about 15 yards from the oval office to the briefing room. standing by now for the president. >> good morning, everybody. i want to give a quick update on what is happening with the debt negotiations, provide my perspective and take a few questions. as all of you know, i met with congressional leaders yesterday. we're going to be meeting again today and we're going to meet every single day until we get this thing resolved. the good news is that all the leaders continue to believe rightly that it is not
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acceptable for us not to raise the debt ceiling, and to allow the u.s. government to default. we cannot threaten the united states faith in credit for the first time in our history. we still have a lot of work to do though to get this problem solved. and so let me just make a couple of points. first of all, all of us agree that we should use this opportunity to do something that's meaningful on debt and deficits. and the reports that have been out there have been largely accurate, that speaker boehner and myself had been in a series of conversations about doing the biggest deal possible, so that we could actually resolve our debt and our deficit challenge for a long stretch of time. and i want to say i appreciate speaker boehner's good faith
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efforts on that front. what i emphasized to the broader group of congressional leaders yesterday is now is the time to deal with these issues. if not now, when? i've been hearing from my republican friends for quite some time that it is a moral imperative for us to tackle our debt and our deficits in a serious way. i've been hearing from them that this is one of the things that's creating uncertainty and holding back investment on the part of the business community. and so what i've said to them is let's go. and it is possible for us to construct a package that would be balanced, would share sacrifice, would involve both parties taking on their sacred casts, would involve some meaningful changes to medicare and social security and medicaid that would preserve the
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integrity of the programs and keep our sacred trust with our seniors and make sure those programs were there for not just this generation but for the next generation. that it is possible for us to bring in revenues in a way that does not impede our current recovery, but is fair and balanced. we have agreed to a series of spending cuts that will make the government leaner, meaner, more effective, more efficient and give taxpayers a greater bang for their buck. that includes defense spending. that includes health spending. that includes some programs that i like very much and it would be nice to have but we can't afford right now. if you look at this overall package, we could achieve a situation in which our deficits were at a manageable level and our debt levels were stabilized, and the economy as a whole, i
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think, would benefit from that. moreover, i think it would give the american people enormous confidence that this town can actually do something once in awhile, that we can defy the expectations that they are always thinking in terms of short term politics for the next election and every once in awhile, we break out of that and do what's right for the country. i continue to push congressional leaders for the largest possible deal. and there's going to be resistance. there is frankly resistance on my side to do anything on entitlements. there is strong resis tatance o the republican said to do anything on revenues. if each side wants 100% of what
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its idealogical free dispositions are, then we can't get anything done. i think the american people wanted to see something done. they feel a sense of urgency. both about the breakdown in our political process and also about the situation in our economy. so what i said to the leaders is bring back to me some ideas that you think can get the necessary number of votes in the house and in the senate. i'm happy to consider all options, all alternatives that they're looking at. the things that i will not consider are a 30 day or 60 day or 90 day or 180 day temporary stopgap resolution to this problem. this is the united states of america. and you know, we don't manage our affairs in three month increments. we don't risk u.s. default on
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our obligations because we can't put politics aside. so i've been very clear to them. we're going to resolve this, and we're going to resolve this for a reasonable period of time and we're going to resolve it in a serious way. my hope is that, as a consequence of negotiations that take place today, tomorrow, the next day and through next weekend, if necessary, we're going to come up with a plan that solves our short term debt deficit problems, avoids default, stabilizes the economy and proves to the american people that we can actually get things done in this country and in this town. with that, i'm going to take some questions starting with ben phillips. >> thank you, very much, mr. president. given that you're running out of time, explain what is your plan
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where the talks go if the republicans continue to impose tax increases? and secondly on your point about no short term stopgap measure, if it came down to that and congress went that route, i know you're opposed to it, but will you veto it? >> i will not sign a 30 day or 60 day or 90 day extension. that's not an acceptable approach. if we think it's hard now, imagine how these guys are going to be thinking six months from now in the middle of election season when they're all up. it's not going to get easier, it's going to get harder. so we might as well do it now. pull off the band-aid. eat our peas. now's the time to do it. if not now, when? we keep on talking about this stuff and these high-minded
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pronouncements about how we got to get control of the deficit, how we owe it to our children and grandchildren. well, let's step up. let's do it. i'm prepared to do it. i'm prepared to take on significant heat from my party to get something done. i expect the other side should be willing to do the same thing, if they mean what they say, that this is important. let me just then comment on this whole issue of tax increases, because there's been a lot of information floating around there. i want to be crystal clear. nobody has talked about increasing taxes now. nobody has talked about increases -- increasing taxes next year. what we have talked about is that starting in 2013, that we have gotten rid of some of these
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egregious loopholes that are benefiting corporate jet owners or oil companies, in a time where they're making billions of dollars of profits. what we have said as part of a broader package, we should have revenues and the best place to get those revenues are from folks like me who have been extraordinarily fortunate and millionaires and billionaires can afford to pay a little bit more, going back to the bush tax rates. and what i've also said to the republicans is if you don't like that formulation, then i'm happy to work with you on tax reform that could potentially lower everybody's rates and broaden the base as long as that package was sufficiently progressive so that we weren't balancing the budget on the backs of middle class families and working class families and we weren't letting hedge fund managers or authors of best selling books off the hook. that is a reasonable
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proposition. so, when you hear folks saying, well, the president shouldn't want massive job killing tax increases when the economy is this weak, nobody is looking to raise taxes right now. we're talking about potentially 2013 and the out years. in fact, the only proposition that's out there about raising taxes next year was if we don't renew the payroll tax cut that we passed in december and i'm in favor of renewing it for next year as well. but there have been some republicans who said we may not renew it. if we don't renew that, then the $1,000 that's been going to a typical american family this year as a consequence of the tax cut that i worked with republicans and passed in december, that lapses. that could weaken the economy. so i have bent over backwards to work with the republicans, to try to come up with a
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formulation that doesn't require them to vote sometime in the next month to increase taxes. what i've said is, let's identify a revenue package that makes sense, that is commensurate with the sacrifices we're asking other people to make. then i'm happy to work with you to figure out how else we might do it. >> what happens if they don't budge on that? >> i do not see a path to a deal if they don't budge period. i mean, if the basic proposition is it's my way or the highway, then we're probably not going to get something done because we've got divided government. we've got democrats controlling the senate. we probably are going to need democratic votes in the house for any package that could possibly pass, and so if in fact mitch mcconnell and john boehner are sincere, and i believe they are that they don't want to see the u.s. government default,
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then they're going to have to compromise just like democrats are going to have to compromise, just like i've shown myself willing to compromise. chip reid? >> thank you, mr. president. you said that everybody in the room is willing to do what they have to do, wants to get something done by august 2nd. isn't the problem the people who aren't in the room, in particular republican presidential candidates, tea partiers on the hill and the public. the latest cbs poll shows 24% of americans said you should raise the debt limit to avoid an economic catastrophe. there are 69% who oppose raising the debt limit. isn't the problem that you and the others have failed to convince the american public that we have a crisis here? >> let me distinguish between professional politicians and the public at large. the public is not paying close attention to the ins and outs of
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how a treasury auction goes. they shouldn't. they're worrying about their family, they're worrying about their jobs. they're worrying about their neighborhood. they've got a lot of other things on their plate. we're paid to worry about it. i think, depending on how you raise the question, if you said to the american people, is it a good idea for the united states not to pay its bills and potentially create another recession that could throw millions of more people out of work, i feel pretty confident i could get a majority on my side on that one. that's the fact. if we don't raise the debt ceiling and we see a crisis of confidence in the markets and suddenly, interest rates are going up significantly, and everybody is paying higher interest rates on their car loaloan
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s, on their mortgages and credit cards, i promise you, they won't like that. now, i will say that some of the professional politicians know better. for them to say that we shouldn't be raising the debt ceiling is irresponsible. they know better. and this is not something that, you know, i am making up. this is not something that tim geithner is making up. we're not out here trying to use this as a means of doing all these really tough political things. i would rather be talking about stuff that everybody welcomes, like new programs or, you know, the nfl season getting resolved. unfortunately, this is what's on
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our plate. it's before us right now. we've got to deal with it what you're right about, i think, is the leaders in the room here, at a certain point, have to step up and do the right thing, regardless of the voices in our respective parties that are trying to undermine that effort. you know, i have a stake in john boehner successfully persuading his caucus that this is the right thing to do, just like he has a stake in seeing me successfully persuading the democratic party that we should take on the problems that we've been talking about too long but haven't done anything about. >> do you think he'll come back to the $4 trillion deal? >> i think speaker boehner has been sincere about doing something big. his politics within his caucus are very difficult. you're right. this is part of the problem with a political process where folks
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are rewarded for saying irresponsible things to win elections or obtain short term political gain, when we actually are in a position to try to do something hard. we haven't always laid the groundwork for it. i think that, you know, it's going to take some work on his side, but look, it's also going to take some work on our side in order to get this thing done. i mean, the vast majority of democrats on capitol hill would prefer not to have to do anything on entitlements. would prefer, frankly, not to have to do anything on some of these debt and deficit problems. i'm sympathetic to their concerns, because they're looking after folks who are already hurting and vulnerable. there are a lot of families and seniors who are dependent on some of these programs. what i'm trying to explain to
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them, is, number one, if you look at the numbers, then medicare, in particular, will run out of money and we will not be able to sustain that program. no matter how much taxes go up. it's not an option for us to just sit by and do nothing. if you're a progressive who cares about the integrity of social security and medicare and medicaid and believes that it is part of what makes our country great, that we look after our seniors and we look after the most vulnerable, then we have an obligation to make sure that we make those changes that are required to make and sustainable over the long term. if you're a progressive that cares about investments and head start and student loan programings and medical research and infrastructure, we're not going to be able to make progress on those areas if we haven't gotten our fiscal house
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in order. the argument i'm making to my party is, the values we care about making sure that everybody in this country has a shot at the american dream, everybody's out there with the opportunity to succeed if they work hard and live a responsible life and that government has a role to play in providing some of that opportunity through things like student loans and making sure that our roads and highways and airports are functioning and making sure that we're investing in research and development for the high tech jobs of the future. if you care about those things, then you've got to be interested in figuring out how do we pay for them in a responsible way. so, yeah, if we're going to have a sales job, this is not pleasant. it is hard to persuade people to do hard stuff that entails trimming benefits and increasing
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revenues. but the reason we've got a problem right now, people keep on avoiding hard things. i think now is the time for us to take it on. rich wolf. >> you talk about shared sacrifice. is a $4 trillion deal that you're talking about roughly. it seems we're four to one spending taxes, we're talking about 800 billion in taxes. that doesn't seem fair to some democrats. i'm wondering if you can clarify why we're at that level and if you can clarify your social security system, would any of the money from social security go toward the deficit as opposed to back into the trust? >> with respect to social security, social security is not the source of our deficit problems. social security, if it is part of a package, would be an issue of how do we make sure social security extends its life and is
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strengthened. the reason to do social security is to strengthen social security to make sure that those benefits are there for seniors in the out years. and the reason they include that potentially in this package if you're going to take a bunch of tough votes, you might as well do it now as opposed to trying to muster up the political will to get something done further down in the future. with respect to a balanced package, is the package that we're talking about exactly what i would want? no. you know, i might want more revenues and fewer cuts to programs that benefit middle class families that are trying to send their kids to college, or benefit, you know, all of us because we're investing more in medical research.
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so i make no claims that somehow the position that speaker boehner and i have discussed reflects 100% of what i want, but that's the point. my point is is that i'm willing to move in their direction in order to get something done. that's what compromise entails. we have a system of government in which everybody's got to give a little bit. now, what i will say is that the revenue components that we've discussed would be significant and would target folks who can most afford it. and if we don't do any revenue, because you may hear the argument that why not just go ahead and do all the cuts and we can debate the revenue issues in the election? you'll hear that from some republicans. the problem is, is that if you
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don't do the revenues, then to get the same amount of savings, you've got to add more cuts. which means that it's seniors or it's poor kids or it's medical researchers or it's, you know, our infrastructure that suffers. you know, i do not want, and i will not accept a deal in which i am asked to do nothing. in fact, i'm able to keep hundreds of thousands of dollars in additional income that i don't need while a parent out there who's struggling how to send their kid to college suddenly finds out they have a couple thousand dollars less in student loans. it's not because i want to raise
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revenues for the sake of raising revenues or i have some grand m am ambition to create a bigger government. if you don't have revenues, you are putting more of a burden on the people who can least afford it. that's not fair. i think the american people agree with me on that. sam stein? >> unemployment now at 9.2%, a large chunk of those jobs, is now a good time to piggy back on the social security question, what do you say to members of your party that consider it? >> our biggest priority is administration, is getting the economy back on track and putting people back to work.
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now, without relitigating the past, i'm absolutely convinced and the vast majority of the economists are convinced that the steps we took in the recovery act saved millions of people their jobs or created a whole bunch of jobs. part of the evidence of that is, as you see what happens with the recovery act phasing out. you know, when i came into office and budgets were hemorrhaging at the state level, part of the recovery act was giving states help so they wouldn't have to lay off teachers, police officers, firefighters. as we've seen that federal support for states diminish, you've seen the biggest job losses in the public sector. teachers, police officers, firefighters losing their jobs. so my strong preference would be for us to figure out ways that
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we can continue to provide help across the board, but i'm operating within some political con statement straints here, be whatever i do has to go through the house of representatives. what that means is among the options available to us is, for example, the payroll tax cut, which might not be exactly the kind of program that i would design in order to boost employment, but does make a difference because it puts money in the pockets of people who are then spending it at businesses, large and small. that gives them more customers, increases demand and it gives businesses a greater incentive to hire. that would be, for example, a component of this overall package. unemployment benefits, again, puts money in the pockets of folks who are out there knocking on doors, trying to find a job every day.
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giving them those resources. that puts more money into the economy and that potentially improves it -- improves the climate for businesses to want to hire. so, you know, as part of a component of a deal, i think it's very important for us to look at what are the steps we can take short term in order to put folks back to work. i am not somebody who believes that just because we solve the deficit and debt problems short term, medium term or long term, that that automatically solves the unemployment problem. i think we still have to do a bunch of stuff, including trade deals that are before congress right now that could add tens of thousands of jobs. republicans gave me this list at the beginning of this year as a priority, something that they thought they could do. now i'm ready to do it, and so far, we haven't gotten the kind of movement that i would have expected. we've got the potential to
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create an infrastructure bank that could put construction workers to work right now rebuilding our roads and bridges and our vital infrastructure all across the country. those are still areas where i think we can make enormous progress. i do think that if the country as a whole sees washington act responsibly, compromises being made, the deficit and debt being dealt with for 10, 15, 20 years, that that will help with businesses feeling more confidentiality about aggressively investing in this country, foreign investors saying america's got its act together and are willing to invest, and so, it can have a positive impact in overall growth and employment. it's not the only solution.
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we're still going to have to have a strong jobs agenda, but it is part of a solution. i might add, it is the primary solution that the republicans have offered when it comes to jobs. they keep on going out there and saying, you know, mr. president, what are you doing about jobs? when you ask them what would you do? we've got to get government spending under control. we've got to get our deficits under control. i say okay. let's go. where are they? i mean, this is what they claim would be the single biggest boost to business certainty and confidence. so what's the holdup? with respect to social security, as i indicated earlier, making changes to these programs is so difficult that this may be an
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opportunity for us to go ahead and do something smart that strengthens social security and gives not just this generation but future generations the opportunity to say this thing's going to be in there for the long haul. that may not be possible. you're absolutely right that, as i said, social security is not the primary driver of our long term deficits and debt. on the other hand, we do want to make sure that social security is going to be there for the next generations. if there is a reasonable deal to be had on it, it is one i'm willing to pursue. >> raising the retirement age, are those -- >> i'm probably not going to get into the details now of negotiations. i might enjoy negotiating with you, but i don't know how much juice you've got in the republican caucus. that's what i figured.
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all right. >> mr. president, you talked to economists. you said economists have agreed that a deal to be made. have you worked with u.s. business leader at all to raise the debt ceiling? >> i have spoken extensively to business leaders. i'll be honest with you. i think business leaders in the abstract want to see a resolution to this problem. what i found is that they are somewhat hesitant to weigh in on some of these issues, even if they're willing to say something privately to me, partly because they've got a whole bunch of business pending before congress. and they don't want to make anybody mad. so this is a problem of our politics and our politicians, but it's not exclusively a problem with our politics and politicians. the business community is a lot
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like everybody else, which is we want to cut everybody else's stuff and we want to keep our stuff. we want to cut our taxes, but if you want to raise revenue with somebody else's taxes, that's okay. that kind of mind-set is why we never get the problem solved. there have been business leaders like warren buffett who has spoken out forcefully on this issue. some of the folks who participated in the bowl simpson commission made very clear that they would agree to a balanced approach, even if it meant for them individually that they were seeing slightly higher taxes on their income, given that i think the average ceo, if i'm not mistaken, saw a 23% raise this past year, while the average worker saw a 0 to 1% raise last year. so i think that there are a lot
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of well-meaning business people out there who recognize the need to make something happen, but i think that they've been hesitant to be as straightforward as i would like when it says this is what a balanced package means. it means that we've got some spending cuts. it means that we've got some increased revenue, and it means that we're taking on some of the drivers of our long term debt and deficits. >> have you thought whether or not the administration -- i'm sorry. >> can you say as the clock ticks down whether or not the administration is working on any sort of contingency plan? >> we're going to get this done by august 2nd. george? >> as a follow on chip's question, you said that the speaker plays tough politics. do you have complete confidence that he can deliver the votes on anything that he agrees to?
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is he in control of his caucus? >> that's a question for the speaker. not a question for me. my experience with john boehner is -- has been good. i think he's a good man who wants to do right by the country. i think that it's, as chip alluded to, the politics that swept him into the speakership, were good for a midterm election. they're tough for governing. part of what the republican caucus generally needs to recognize is that american democracy works when people listen to each other, we're willing to give each other the benefit of the doubt. we assume the patriotism, good intentions of the other side and we're willing to make some
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sensible compromises to solve big problems. i think that there are members of that caucus who haven't fully arrived at that realization yet. >> your confidence wasn't shaken about him walking away from the big deal he said he wanted. >> these things are a tough process. in fairness, a big deal would require a lot of work on the part of harry reid and nancy pelosi and myself to bring democrats along. the point is, if everybody gets into the boat at the same time, it doesn't tip over. that was bob dole's famous comment back in the '90s. that is always the case when it comes to difficult but important tasks like this. last question. april ryan? >> mr. president, i want to
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visit the issue of sacrifice. in 2009, you said that we have not seen the worst yet. now the budget cuts looming, you have minorities, poor, the elderly as well as people who are scared of losing jobs, fearful and also what say you about the debt-free america act? do you support that? are you supporting the republican bill that's modeled after that? >> well, i'm not going to comment on a particular bill right now. let me speak to the broader point that you're asking about, april. this recession has been hard on everybody, but obviously, it's harder on folks who got less.
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and the thing that i am obsessed with and have been since i came into office is all those families out there who are doing the right thing every single day, who are looking after their families, who are just struggling to keep up and just feel like they're falling behind no matter how hard they work. i got a letter this past week from a woman who, her husband had lost his job. had pounded the pavement, finally found a job. they felt like things were stabilizing for a few months. six months later, he lost the second job. now they're back looking again, trying to figure out how are they going to make ends meet. there are just hundreds of
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thousands of folks out there who really have seen as tough an economy as we've seen in our lifetimes. now, we took very aggressive steps, when i first came into office, to yank the economy out of a potential great depression and stabilize it. we were largely successful in stabilizing it, but we stabilized it at a level where unemployment is still too high and the economy is not growing fast enough to make up for all the jobs that were lost before i took office and the few months after i took office. so this unemployment rate has been really stubborn. there are a couple of ways that we can solve that. number one, is to make sure that the overall economy is growing, and so we have continued to take a series of steps to make sure
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that there's money in people's pockets, that they can go out there and spend. that's what the payroll tax cuts were about. we've taken a number of steps to make sure that businesses are willing to invest. that's what the small business tax cuts are and some of the tax breaks for companies that are willing to invest in plants and equipment and zero capital gains for small businesses. that's what that was about, giving businesses more incentive to invest. we have worked to make sure that the training programs that are out there for folks that are having to shift from jobs that may not exist anymore so that they can get the training they need for the jobs that do exist, that those are improved and sharpened. we have put forward a series of proposals to make sure that regulations that may be unnecessary and are hampering some businesses from investing, that we are examining all of those for their costs and benefits. if they are not providing the
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kind of benefits in terms of the public health and clean air and clean water and worker safety that have been promised, then we should get rid of some of those regulations. we've been looking at the whole menu of steps that can be taken. we are now in a situation where, because the economy has moved slower than we wanted, because of the deficits and debt that result from the recession and the crisis, that, you know, taking an approach that costs trillions of dollars is not an option. we don't have that kind of money right now. what we can do is to solve this underlying debt and deficit problem for a long period of time so that then we can get back to having a conversation about, all right, since we now
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have solved this problem, that's not no longer what's hampering economic growth. that's not feeding business and uncertainty. everybody feels that the ground is stable under our feet. are there some strategies that we could pursue that would really focus on some targeted job growth? infrastructure being a primary example. the infrastructure bank that we've proposed is relatively small. but could we imagine a project where we're rebuilding roads and bridges and ports and schools and broadband lines and smart grids and taking all those construction workers and putting them to work right now? i could imagine a very aggressive program like that that i think the american people would rally around and would be good for the economy, not just next year or the year after but for the next 20 or 30 years, but we can't have that conversation
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if people feel as if we don't have our fiscal house in order. so the idea here is let's act now. let's get this problem off the table, and then with some firm footing, with a solid fiscal situation, we will then be in a position to make the kind of investments that i think are going to be necessary to win the future. so this is not a right or left conservative liberal situation. this is how do we operate in a smart way, understanding that we've got short term challenges and long term challenges. if we can solve some of those long term challenges, that frees up some energies to be able to deal with the short term ones as well. thank you very much, everybody. >> with the stakes about as high as they get, the potential default on the debts of the united states, the president has had his second news conference
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in two weeks, the headlines of the hour, the president said that he will not consider and will not sign a temporary stopgap measure, but he also added "we are going to get this done by the deadline, august 2nd." bob schieffer, our chief washington correspondent joins us. give us some insight into what you just heard. >> getting it done is going to be a tall order. from what i take from the president's remarks, they're as far apart as they have ever been. here is what's different, scott. the leaders seem ready to make a deal, but it's the followers that are the problem. john boehner cannot deliver the republican votes to make a significant deal because his caucus will not agree to anything that looks like will cause increased revenues. on the other hand, the president can't deliver the democratic votes because democrats refuse at this point to tamper with the social security or even talk
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about it. so that's almost a little bit scary. we haven't been in this kind of situation in awhile. >> stay with us, bob while i switch over to nancy cordis on capitol hill. we heard the democratic position on all of this. what do the republicans say? >> well, scott, speaker boehner just went on the radio this morning to clarify his position. he took on what some of the things the president was saying. first of all, he was never in favor of tax increases as part of this deal. he spoke to the president about tax reform, about simplifying the tax code, closing loopholes in exchange for bringing rates down for everyone in a way that would be revenue neutral. that's at odds with what the president is proposing as you heard in that press conference. he wants to raise about a trillion dollars in tax revenue, in essence to get to that $4 trillion in deficit reduction. he wants to close loopholes for
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corporations. he also wants to eliminate the bush tax cuts for the wealthiest americans. speaker boehner says this is something he can't accept. what he didn't mention is the fact he's got a lot of pressure from the right, from the tea party members who swept into power partly because they promised not to raise taxes and they were angry at any mention of the speaker cooperating with the president on increasing taxes. >> bob, in the 30 seconds we have least, i don't remember a democratic president putting social security, medicare and medicaid on the table this way. >> they very seldom do. there have been deals made on entitlements. there were some in the last probably 20 years or so, but the democrats are not ready to do this. nancy pelosi says no way, knowhow. until they can get past that and at least be willing to discuss it, it's going to be difficult to make any kind of a deal that
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is significant. that's just one of the things that has to be on the table. they don't want to do that. the republicans don't want to do anything that looks like an increase in taxes. so there you are. they're as far apart as they have ever been. i do not see how the path to get together, where it is at this point. >> thank you, bob, nancy, chip. there will be more about the president's news conference on your local cbs news stations on and on the cbs evening news. i'm scott pelley, "cbs evening news," new york. ,,
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The Early Show
CBS July 11, 2011 7:00am-9:00am PDT

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